Interesting article about Oil

wanghong

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1 E4 t1 R, a* {/ aBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
- T* I% U, M, ^/ Z' O2 ~! tthese oil producer will go bankrupt or out of the business even if
' `8 ]5 t+ G6 b/ N4 dcrude prices improves. This implies also to good names such as Shell,
$ I/ N- j  k  L! h2 P% g+ `, QEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
  M9 Q4 `* t. G* ?$ M3 ]" Hleast $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
' A2 l0 h+ Y2 S, f5 V0 {of so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
9 Q+ d. F9 z4 H4 a  |5 ?in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
. T0 F/ M0 d: A+ v+ f0 z/ y8 yThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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) I3 I+ ]/ {, S5 G- N4. Production of bio-fuels is beginning to reach critical mass. Bio
6 J  n- P2 W! g- S, D" hfuel is being produced from many plants and algae. The production
  ^2 l+ K7 @9 g1 Zpotential per acre in some cases is astounding. Many countries are
0 C) F) E( I- ]" i7 {racing to produce bio fuels.
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- r9 f- p# X* j/ [( Y  E2 q/ ]5. Virtually every restaurant in the US and all food processing plants
, @4 F- l! g- W, L. v+ Jare now selling their used oil to bio-diesel producers. Every pork,
- j4 k# L; B/ @5 T) Rcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6 r4 o" a1 q# ]( Q) M% {# K6. There are 99 nuclear reactors in various stages of planning and
# {$ I# i% O! l9 ^3 }( Bconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
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3 `6 b; ]3 H" k0 @) Q$ Q0 m7. Every company in any form of transportaion business is replacing
, P& c3 w$ g1 O+ n, T) Colder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
! O6 n- A* ]! b" ~, n9 Sfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
$ V9 \% j3 v# h; w$ @# yavailable at very little cost or risk. The gas is displacing crude
( |6 q0 \) Z4 q# X6 d/ |oil.
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/ E3 I2 V" ]6 L4 W9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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# }$ m5 t/ G+ W+ g5 x10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


/ R9 U# R/ o7 ~- |* x8 yEach of the above by itself will not make a large difference in the
; g: }, [7 V2 D- p. f7 Wprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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8 |; S. m1 q0 q3 IWith the above scenario, I still believe that there are under
  j$ C/ O; g! e0 `performed OIL companies and probably they are yet to get the justified
value .....
% }0 b" Q3 D3 c0 q( p3 yIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


" D3 I+ }0 s  Y4 q7 g4 MThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only